Principles Of Banking Final Exam

Which of the following is usually the most significant source of bank income? - Answer- Lending Function Which of the following loans is normally unsecured? - Answer- Credit Card At what stage in the lending process do banks obtain and evaluate all available information to determine creditworthiness? - Answer- Investigation Discrimination against prospective borrowers because of where they live is know as: - Answer- Redlining A loan that is not guaranteed by any type of collateral is: - Answer- Unsecured What department helps prevent loan losses by taking action when payments are late? - Answer- Asset Recovery Department Which of the following is the responsibility of a bank board of directors? - Answer- Approving lending authority for bank loan officers Which of the following Federal Reserve regulations prohibits lenders from discriminating against credit applicants on the basis of age, race, color, religion, national origin, sex, marital status, or receipt of income from public assistance programs? - Answer- Equal Credit Opportunity Act (Regulation B) Small business are defined by the federal goverment as having: - Answer- 500 employees or less What document establishes a bank's right to collateral pledged for a loan? - Answer- Security Agreement What life insurance plan has a savings element? - Answer- Whole Life Insurance What is the worth of money or assets currently in hand, at a specified time, of left to grow at a given rate? - Answer- Future Value What form of planning should adults think about so that their assets and legal obligations are managed well and passed on to their selected beneficiaries? - Answer- Estate Planning What kin